All Forum Posts by: Effram Barrett
Effram Barrett has started 16 posts and replied 155 times.
Post: What's Your Main Obstacle in Buying an Apartment Building?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
@Michael Ealy what are the key measurements you use to figure out if a complex is worth pursuing?
Post: What's Your Main Obstacle in Buying an Apartment Building?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
Originally posted by @Alana Donson:
I am a realtor and my soul purpose of acquiring a real estate license was to become an investor in multifamily/apartment buildings. However life happened and my credit burned up and now I have a five month old. In life you either need the credit or the money. Of course I know about creative financing but that means you have to know people in high places and since I'm new to real estate I don't. So yes, I'm stuck.
Has the bold/underlined worked in your favor so far? I ask because I am in the process of getting my license to leverage my investment business
Post: What's Your Main Obstacle in Buying an Apartment Building?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
@Michael Ealy makes sense actually. I’m assuming the best method for finding the off market apt complex deals is networking and letting people know?
Post: What's Your Main Obstacle in Buying an Apartment Building?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
Originally posted by @Michael Ealy:
Originally posted by @Effram Barrett:
I have actually been more inclined to multi family vs SF. Of course money, or lack there of, is an issue but I think analyzing multi family deals is something I could make zero in on.
Also finding good quality complexes off market. I would be comfortable with 6-28 units to start out.
Effram,
Smart man - Multi family is the way to go. I still buy houses but with MF you get more cashflow and the cashflow is more secure since you have more tenants paying the rent. You get a vacancy on a single family rental and you have 100% vacancy and negative cashflow. And 2 months of vacancy with an SF typically wipes out the entire year's cashflow.
What help do you need in analyzing the numbers on an MF?
My biggest weakness is calculating the distribution of funds if I had an equity partner invest in the deal. I have trouble calculating that into my monthly costs/payments.
I agree strongly with your statement in bold.
Post: What's Your Main Obstacle in Buying an Apartment Building?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
I have actually been more inclined to multi family vs SF. Of course money, or lack there of, is an issue but I think analyzing multi family deals is something I could make zero in on.
Also finding good quality complexes off market. I would be comfortable with 6-28 units to start out.
Post: Trying to trade rent discount for sex--just amazing! Doah!
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
This is stupid on so many levels. Why risk your livelihood and passive income by harassing your tenants sexually
Post: Utilizing 401k/profit sharing for 1st deal/s
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
@Justin Windham @George Blower I've been curious if there are ways to rollover 401k funds from my employer based account (principal) to a SDIRA while still employed or will I no longer have to work for the same company in order to do so?
Post: Dangers of renting to someone with poor credit?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
The tenant I have in place now had poor credit and looked terrible on paper.
She went through a divorce where the ex messed up her credit, and she also had a public intoxication charge; as you can imagine the red flags were there. My realtor (who has property himself) said she seemed like she was trying hard to turn her life around.
almost 2 years later, I have never had to chase her for the rent, and most of the time she pays early. She also treats the place as if were her own. Poor credit score can be used to leverage your lease, but it shouldn't be the only reason to deny. People need you to take a risk on them sometimes and luckily it worked out in my experience
Post: Hard money loans? Do I have to pay a down payment ?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
Originally posted by @Gibran Saliba:
@Mike thanks bud. How can I get joint venture partners?
Gain knowledge and get out there and meet people. Put yourself out there and let people know you invest in real estate
Post: HELOC appraisals - why so low?
- Real Estate Agent
- Houston, TX
- Posts 159
- Votes 161
Originally posted by @Marzieh Rostami:
@Jonny R.
If you don't like what you see don't hesitate to negotiate. I applied for a HELOC last year with chase the first time the appraiser didn't even bother to come in the house. He had done a drive by and had appraised the house at our purchase price and of course never even saw the $40k in updates. I argued with the bank and they sent the guy back and he came up about $30k in value. I disagreed again and they asked me to send some comps myself so I did and they increased the value another 5k whic in was ridiculous so I gave up and applied with wells Fargo. Their appraisal came back at the exact Number I had in mind. Which would be real market value.
So if you don't agree with the appraisal let them know or consider other options.
I've been intrigued by doing something similar to this. Doing upgrades to my personal residence, with the hopes of raising the value for an appraisal, and using the HELOC to secure a property. Did it/is it working out for you?